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Nvidia Forecasts 70% Revenue Surge on Soaring AI Demand

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Nvidia is predicting a 70% jump in revenue for the next fiscal year, far outpacing Wall Street's average estimate of 44% growth. The chipmaker's second-quarter revenue more than doubled from a year earlier, driven by demand for its datacenter products. Nvidia says shortages of memory components and rising memory costs could squeeze its expansion but the forecast, the first the company has issued a full year in advance, could help ease investor concerns of an AI bubble.

Nvidia Backs AI Boom

Nvidia is predicting a 70 percent jump in revenue in the next fiscal year, riding high on soaring demand for AI computing.

REPORTER:  
The chipmaker's forecast, announced during Wednesday's earnings call, far exceeds Wall Street’s average estimate of 44 percent growth. But Nvidia says shortages of memory components and rising memory costs could squeeze its expansion. The company's second-quarter revenue more than doubled from a year earlier, driven by demand for its data center products. It's also the first time Nvidia has issued a revenue forecast a full year in advance, a move that could help ease investor concerns of an AI bubble.